Michael P. Kandler, Author at The Insurance & Reinsurance Report

September 9, 2015 Excess Insurance

Read the Fine Print: Contingent Coverage is Not Excess Coverage

In Bartowiak v. Underwriters at Lloyd’s, London, 2015 IL App (1st) 133549 (August 31, 2015), the Illinois Court of Appeals ruled that the defendant-insurer did not have a duty to defend or indemnify the plaintiff in underlying wrongful death action pursuant to a contingency liability policy.

On October 31, 2009, a truck delivering road-resurfacing material struck and killed a road-construction worker. The decedent’s wife sued the truck driver, the trucking company, and the truck broker. The truck driver had a $1 million automobile policy. …

July 21, 2015 Emerging Issues

Google ‘Adwords’ Advertisements Trademark Infringement, Not Slogan Infringement

In Auto Mobility Sales, Inc. v. Praetorian Insurance Co., 2015 U.S. Dist. LEXIS 84777 (S.D. Fla. June 30, 2015), the U.S. District Court for the Southern District of Florida held that an insurer had no duty to defend or indemnify its insured against allegations of trademark infringement resulting from the insured’s use of certain language in a Google ‘Adwords’ Advertisement.

Auto Mobility Sales, Inc. (AMS) sells and rents handicap-enabled vehicles. AMS was insured by a general liability insurance policy issued by Praetorian Insurance Company. …

March 5, 2015 Uncategorized

11th Circuit Refuses to Enforce Knowing Violation of Rights of Another Exclusion in FACTA Lawsuit

In Travelers Property Casualty Co. of America v. Kansas City Landsmen, L.L.C., No. 14-11006, 2015 U.S. App. LEXIS 453 (11th Cir. Jan. 12, 2015), the Eleventh Circuit reversed the district court’s grant of summary judgment in favor of Travelers Property Casualty Company of America and St. Paul Fire and Marine Insurance Company (“insurers”). The Eleventh Circuit determined that the insurers may have a duty to defend The Kansas City Landsmen, LLC and A Betterway Rent-a-Car, Inc. (“Car Rental Companies”).

The underlying disputes arose from …

February 10, 2015 Emerging Issues

Meth Is Not “All Natural”: Failure To Conform Exclusion Bars Coverage for False Advertising Lawsuits

In General Star Indemnity Co. v. Driven Sports, Inc., 2015 U.S. Dist. LEXIS 7966 (E.D.N.Y. Jan. 23, 2015), General Star Indemnity Co. (“Gen Star”) issued a commercial lines policy to Driven Sports, Inc. (“Driven”), a producer and seller of an energy supplement called Craze. Driven had been sued in three separate actions alleging that Craze improperly contained a methamphetamine analog. Gen Star provided a defense under reservation of rights. Gen Star then brought a declaratory judgment action, and the parties cross-moved for summary judgment.…

November 6, 2014 Policy Conditions, Considerations, Construction, and Formation

“Excess” Clause Trumps “Pro-Rata” Clause in Colorado Other Insurance Dispute

Travelers Home and Marine Insurance Company (Travelers) brought a declaratory judgment action against Central Mutual Insurance Company (Central) claiming that it contributed more than its required share to the underlying action against a common insured, Winston Howe (Howe). The underlying action involved a motor vehicle accident in which Travelers insured, Howe, was driving a car owned by Central’s insured, Walter Pawlowski (Pawlowski). Howe was a permitted user of Pawlowski’s car and thus, qualified as an insured under the Central Policy.

Travelers sought determinations that the …

November 3, 2014 Emerging Issues

Missouri Federal District Court Rejects Advertising Injury Coverage for Counterfeit Goods Suit

In Colony Insurance Co. v. Frison Flea Market, Inc., No. 4:13CV2193(JCH), 2014 U.S. Dist. LEXIS 130841 (E.D. Mo. Sept. 18, 2014), the district court found no coverage under the “personal and advertising injury” part of the subject insurance policy because there was no alleged causal connection between the advertising and sale of counterfeit goods.

As background, Jack Frison and Frison Flea Market Inc.’s (Flea Market) were found liable for having infringed Coach’s trademarks and copyrights by, in pertinent part, allowing the illegal sale of …

August 16, 2014 Emerging Issues

Another Victory for Insurers in Litigating the Scope of Coverage B: District Court Rejects Duty to Defend Against Alleged Violations of Data Privacy Laws

In National Union Fire Insurance Company of Pittsburgh, PA v. Coinstar, Inc. (W.D. Wash., No. C13-1014-JCC, Aug. 7, 2014), the U.S. District Court for the Western District of Washington ruled that National Union Fire Insurance Company of Pittsburgh, PA had no duty to defend Redbox Automated Retail, LLC (Redbox), a Coinstar, Inc. subsidiary, in two separate class action suits alleging that Redbox violated its customers’ privacy. Notably, the first class action suit, Cain v. Redbox, alleged that Redbox violated Michigan’s Video Rental Privacy Act …